Foreign exchange dulls excellent year for Ero Copper
Micon Awarded Front End Engineering Design and Definitive Feasibility Study
SPONSOREDmicon international
SPONSOREDrex minerals
Davyhurst back producing gold; can it produce a lot more?
SPONSOREDora banda mining
Solaris Resources on winning streak in Ecuador
SPONSOREDsolaris resources
Ero Copper reported net income of US$52.5 million on sales of $324.1 million in 2020, a 43% fall from the $92.5 million in net earnings it achieved on revenue of $284.8 million in 2019, largely a result of foreign exchange loss $79.8 million. The company ended 2020 with $62.5 million in cash compared to $21.5 million in 2019.
It produced 42,814 tonnes of copper in 2020, slightly more than the 42,318t in 2019, at a cash cost of 67c per pound, 28% less than the 93c/lb in 2019. The company also produced 36,830oz of gold from its NX Gold mine, 21% more than the 30,434oz produced in 2019.
Micon Awarded Front End Engineering Design and Definitive Feasibility Study
SPONSOREDmicon international
SPONSOREDrex minerals
Davyhurst back producing gold; can it produce a lot more?
SPONSOREDora banda mining
Solaris Resources on winning streak in Ecuador
SPONSOREDsolaris resources
"Our 2020 financial results reflect the strong operational performance and record-low operating costs we achieved during the year. Despite headwinds associated with the COVID-19 pandemic, 2020 was an outstanding year for the company and we intend on carrying this operational momentum into 2021, aided thus far by a stronger copper price," said CEO David Strang.
The company is guiding for production of 42,000-45,000t of copper in 2021 and 34,500-37,500oz of gold.
Subsequent to year-end, Ero amended the credit agreement it has with Scotiabank and BMO to reflect its $75 million senior secured amortising non-revolving credit facility and $75 million senior secured revolving credit facility with a $150 million senior secured revolving credit facility payable in March 2025 to further reduce its cost of borrowing.
In 2021, Ero aims to advance a regional exploration programme at the MCSA mining complex on targets within the Pilar and Vermelhos districts, focused on upgrading the existing mineral resources and extending the known limits of mineralisation. It will also continue studies focused on the optimisation potential at its Boa Esperanca project and the progression of the first regional exploration programme at NX Gold.
Shares in Ero Copper are trading at C$24.81, valuing the company at $2.2 billion.